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SPACs, Crypto Lead Way on Securities Class Actions, Report Says (1)

July 27, 2022, 4:01 AMUpdated: July 27, 2022, 7:51 PM

Investor class actions against SPACs and cryptocurrency firms alleging federal securities law violations are on track to hit an all-time high in 2022, a new report said.

Shareholders filed 18 cases related to special purpose acquisition companies (SPACs) and 10 cases concerning cryptocurrency in the first half of the year, according to the annual report from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse. Those numbers are compared to 33 SPAC cases and 11 cryptocurrency filings for all of 2021.

This year’s sharp rise in SPAC and crypto-related suits comes as overall securities litigation remains essentially flat. ...